Even though most recent global crises were unforeseeable, there are plenty of lessons to be learned from their origin, development and impact – lessons that can be used to strengthen future supply chains. Unexpected disruptions quickly increase supply chain costs, both directly and indirectly. This effect is intensified when businesses are not prepared for these supply chain disruptions. But many risks along the supply chain can be effectively and sustainably mitigated if strategies are continually aligned with current risk factors.
In addition to the corporate goal of balancing robustness and agility in supply chains, many organizations are facing more and more regulations concerning risk management. Many businesses in Germany will be required to monitor and minimize risks along their entire supply chains starting in 2023, according to the German Supply Chain Due Diligence Act. Because this law affects end-to-end supply chains, including direct and indirect suppliers, it has implications for companies around the world.
Project experience shows that sustainably integrated supply chain risk management generates a clear added value, for instance by:
- Improving service levels and transparency across the supply chain
- Systematically reducing or avoiding future losses
- Enabling fast decision making to mitigate disruptions
- Freeing up essential resources to support the core business
4flow’s resilience framework is comprised of a tested, practical approach to supply chain risk management and reviews the entire supply chain. The goal of the four iterative steps is the sustainable integration of risk mitigation strategies in the organization.
Supply chain digitization is a factor of success
More than any other business area, end-to-end supply chains require the processing of great amounts of both internal and external data. Innovative software tools increase the effectivity of risk management while also encouraging digital transformation throughout the business.
4flow supports customers to achieve transparency concerning current risks along their supply chains. By screening and quantifying all relevant areas of impact and the associated stakeholders, we can determine a customer’s individual risk baseline. With proven benchmarks and best practices, 4flow helps customers identify and prioritize optimization measures that are appropriate and effective for their business.
Your solutions at a glance:
- Comprehensive analysis and classification of risks along the entire supply chain
- Qualitative and quantitative evaluation of identified risks
- Establishment of a management system to constantly monitor supply chain risks
- Determination of appropriate mitigation strategies for each risk group
- Development of an effective and sustainable implementation plan for the total risk mitigation strategy
- Integration of software solutions to manage risks across the supply chain in real time